Investment Q&A

Q: Good morning 5i

I have benefited quite well from the ten year market performance. Not as well as if I had bought the US Market on March 9 2009 and added new capital all the way. In some individual stock positions I have experienced losses during this longest bull market run.

Additionally, over the past couple years, 5i has add positively to net asset value and this investor's awareness level.

The question here is about seeing through an inevitable correction or bear market event.
The minor correction event of 2018 offered a view to how it will feel when prices decline.
In the wake of that event, how does an investor continue to deploy and redeploy capital while staring at the high potential for a market decline.
The difficulty being experienced is, as I cleanup and balance individual weighting, it is now difficult to make a go-forward redeployment decision......add to equity exposure.
Additionally, the amount of time being waisted watching daily price movements has increased.
Some days it feels like going to cash would solve all my concerns. It would not however since asset growth is a necessary target.

From your experience would you please offer some Thoughts and guidance on what is written above?

Thanks
Dave

Q: You have said in the past that New Highs tend to go higher. Is buying New Highs a good strategy ? Recent New Highs are GIB.A, TSGI, ZBK, PBL, TD, CSU, SHOP, CF, all good names and you seem positive towards these Companies. RAK

Q: Som seif recently said he predicts emerging block chain technology will cause the etf industry to go to zero. Do you consider this a feasible scenario and if so how imminent is this likely to occur in your opinion.

Q: A guest on BNN said he hedged his equity positions by index hedges.What are they and could you give me an example. thanks James

Q: How do I obtain a list of companies that are growing their dividend in excess of 10% per year?

Q: Greetings
Being retired I am interested in income and I am unwilling to give up a lot of upside for income security. As a result I own all the BMO covered call ETFs: ZWB,C,E,H and U. It has occurred to me that, if you feel the market will rise from here, buying the put strategy of ZPW and ZPH would make more sense as since calls limit the upside puts should limit the downside. Is my logic correct?
Thanks
Don

Q: Re Kim's preferred share question, TD Webbroker publishes a monthly analysis covering the following topics:
Market Commentary
and Strategy ................................................................................................
........................................... 2
Preferred Share
Recommendations ...............................................................................................
................................... 3 - 5
Preferred Share Classes
and Characteristics ...................................................................................
...................................... 6
Preferred Share
Table Notes ...................................................................................................
................................................ 7
Retractable Pref
erred Shares ..................................................................................................
................................................ 8
Rate-Reset Pref
erred Shares ...................................................................................................
....................................... 9 - 19
Floating-Rate-Reset
Preferred Shares ..........................................................................................
................................ 20 - 21
Perpetual Prefe
rred Shares ....................................................................................................
....................................... 22 - 25
Fixed-to-Float Pr
eferred Shares ...............................................................................................
............................................. 26
Floating Rate Pref
erred Shares ................................................................................................
............................................. 27
Split S
hares ..................................................................................................................
................................................. 28 - 29
U.S. Dollar U.S. Iss
ued Preferred
Shares ......................................................................................
............................... 30 - 36 (It's 36 pages)

Also http://www.prefletter.com/ publishes monthly recommended issues. A single copy is about $20

Q: Another site about preferreds for Kim would be : investingforme.com
They have information under their "Data" section on all most all preferreds
John

Q: Do you know where I can find a cdn stock list that ranks stocks by total return (capital appreciation and dividends) for each year over the last 10 or more years?

Q: Given the recent volatility in the US I am wondering about portfolio insurance in the short term. While holding cash is one way to mitigate a drop, I don't really want to hold much more than I currently do so I'm wondering if HIU would be a good way or if there is some other strategy you might suggest. I hear many comments about more significant declines, with the trade issues that are currently occupying a lot of political talk, raising rates, and, if the Dow gets back up to the 26,000 level that could be a double top, all of which make me nervous.

So, since I am a long term investor, rather that take profits and raise more cash, what would you do for some short term downside portfolio insurance? Thanks

Q: Further to Peter’s question this morning about passive income earned within a corporation, given the new punitive tax rules that are being implemented, limiting fair taxation to the first $50,000 of income, what stocks should he be switching out of to limit his annual income? He was asking for stocks that did not pay a dividend.

A note to fellow member Peter, which is that you still have to be very careful when realizing capital gains, because they too will be treated as income, just at the 50% inclusion rate. So if you have some dividend income still, and you realize capital gains of $100k in a single year, you’ll still go over the $50,000 threshold. I personally don’t know of a way around it, but the stocks you mentioned already have a preferential tax treatment, so short of removing funds from the corporation and investing outside of it, I don’t see a way around it. I’d be very curious to know how other members are handling this new tax. Any chance of writing an article about this, as I’m sure in your wide membership base, there must be a good number of people affected by this.

Q: What is difference between:
Management exp. ratio(MER)
And
Management fee
Thank you.ebrahim

Q: Hello
Could you please tell me how drips get taxed?
Since they pay in stock, does the value of the stock received get treated as dividend income on a T5? Is the only difference being the dividends are paid in stock and often purchased at a discount?
Or is it a formula where the ACB gets adjusted and the benefit is in the form of a capital gain once the shares are sold?
Thanks

Q: As part of my morning routine, I always check the Ink Insider Morning Market Reports on the TD Web Broker website for individual insider buying and selling which I have found helpful. Do you know of another source where this is available? With thanks, Bill

Q: Re: Brenda's inquiry about an online brokerage, I cannot say enough about Q-trade in Vancouver. They come by their #1 ranking in the annual Globe poll honestly. Superb in every way. I have trading authority over several friends' accounts housed at the major banks and none of them, with all their resources, can match Q-Trade. It's a sweet Canadian success story, in my view.

Kim

Q: Thank you, 5i Crew, for posting Dan's correction so quickly. I was all set to sell my TCEHY held in my TFSA and RIF first thing Monday morning. So very pleased with your service and delighted members are generous with useful information.

Q: I don't have a good feeling about this market. It seems very finicky. In the last month I've lost about half of last years gains. I got out of the pot stocks at the right time and did well, but aside from that, everything else is going bust except for Reliq Health. I'm tempted to sell everything and wait. The dividends don't help when the market is like this. I'm losing thousands per day. Do you have any sage advice when this kind of panic sets in? I only started investing a year ago so I am not used to this constant crash scenario...

Q: Good evening. What are the requirements needed to up list from the venture to the TSX?

Q: In response to the question about news releases, I have found Stockwatch is very good for that.

Q: My question is regarding CDIC coverage for GICs in related companies. Specifically, is there $100,000 CDIC coverage for each of Laurentian Bank, Laurentian Trust, LBC Trust and B2B Bank, all of which are 100% owned by the same parent company, for a theoretical total of $400,000 for the group; or is it $100,000 combined total for these related financial institutions. The same question for Home Trust and Oaken, as well as others.